Trump is blocking billions of dollars of grants that would fix the grid

by | Aug 15, 2026 | Climate Change

Trump is blocking billions of dollars of grants that would fix the grid

The Trump administration’s actions have created significant uncertainty for hundreds of grid infrastructure projects that received federal funding through the Department of Energy. Multiple initiatives aimed at improving power reliability, reducing outages, and modernizing electrical systems have been halted or delayed, with funding flowing to grantees reduced to minimal levels.

In Wisconsin, utility Alliant Energy canceled a project designed to reduce power outages in disadvantaged and tribal communities after the DOE terminated its $50 million grant. In California, the Sacramento Municipal Utility District has not received reimbursement for expenses incurred since October, despite having deployed advanced smart meters and grid devices. A transmission line project in the upper Midwest remains pending $464 million in DOE funds intended to support high-voltage power infrastructure.

According to analysis by the DOE Alumni Network, the agency announced termination of 356 awards totaling $12.5 billion since January 2025, with threats to terminate an additional 303 awards worth $12.2 billion. However, the agency has also stalled projects that have not been officially terminated, leaving thousands of grantees unable to determine funding timelines. Former DOE officials describe a pattern of administrative delays and lack of project management that has functionally frozen promised funds across the country.

The DOE announced a review process in May 2025 to evaluate financial assistance on a case-by-case basis. In October, the agency terminated 321 financial awards supporting 223 projects, all tied to states that voted for Kamala Harris in 2024. The DOE has stated that termination decisions were not based on political considerations, citing programmatic and feasibility criteria. However, court testimony reported by The New York Times indicated that termination decisions were not based on programmatic or cost-reduction factors, with all but one affected project located in or having performance in Democratic-voting states.

According to tracking by the High Road Analytics consultancy, approximately $9.1 billion of the $11.4 billion in obligated DOE funds for grid infrastructure and resilience projects remains at risk, with funding stalled or completion timelines shortened. Many projects require matching funds from grantees, meaning utilities and agencies have invested hundreds of millions of dollars in projects now uncertain of federal support. Senate Democrats have called for immediate restoration of funding terminated in October, citing concerns about fair application of federal law.

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